Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that for VAT purposes the sale of burial plots is treated as the sale of developed land. Consequently the sale of burial plots by a local authority on or after 1 July 2010 will be subject to VAT at the reduced rate of 13.5%. This arises out of the European Court of Justice ruling against Ireland of 16 July 2009 in Case C-554/07 in respect of services provided by public bodies, including local authorities.

In practice, the VAT liability on the sale of grave spaces will depend on when the cemetery was developed. In this regard, the sale of grave spaces from a cemetery that was developed more than 5 years prior to 1 July 2010 will remain exempt from VAT. It is understood that most local authority cemeteries were developed before 1 July 2005. Where VAT is applied, the impact on families will depend on whether, and the degree to which, the VAT is passed on by the local authorities, which in any event should be limited somewhat since public bodies providing the service will have entitlement to deduct VAT incurred on their inputs.